The Board of Directors of Blue Square-Israel Ltd. (NYSE: BSI) announced yesterday that it has appointed Doron Cohen to serve as a Director of the Company, effective immediately. Mr. Cohen has been serving as the CEO of Blue Square's parent company, Co-Op Blue Square Consumer Cooperative Society Ltd., since November 1, 2000.

For the last two years, Mr. Cohen served as General Director of the Governmental Companies Authority, which is responsible for the supervision of more than 100 governmental companies as well as for promoting and coordinating the government's privatization process. Between 1995 and 1999, Mr. Cohen was Deputy Director and Manager of the Privatization Division of the Governmental Companies Authority.

Mr. Cohen received a B.A. in Economics and Business Management and a Masters in Business Administration from the Hebrew University in Jerusalem.

Blue Square is a leading retailer in Israel. A pioneer of modern food retailing in the region. Blue Square currently operates 169 supermarkets under different formats, each offering varying levels of services and pricing. For more information, please refer to Blue Square's website at www.coop.co.il.

The statements contained in this release which are not historical facts contain forward-looking information with respect to plans, projections, or future performance of the Company, the occurrence of which involve certain risks and uncertainties, including risk of market acceptance, the effect of economic conditions, the impact of competitive pricing, supply constraints, the effect of the Company's accounting policies, as well as certain other risks and uncertainties which are detailed in the Company's filings with the Security and Exchange Commission, particularly the prospect to its public offering in July, 1996.